Over the last few weeks, some European countries have introduced changes to their parental leave policies to give greater flexibility to employees and support their return to work. In Sweden, a country already renowned for its progressive family policies, grandparents are now able to take a share of paid parental leave. Couples in Sweden currently get 480 days parental leave (240 days each).
The new law allows parents to transfer 45 days of their 480 days to grandparents and a single parent can transfer 90 days during the child’s first year. In Ireland, recent changes have extended Parent’s Leave and Parent’s Benefit from seven weeks to nine weeks, as part of the announcements made in its recent Budget. Parent’s Leave is available to both employees and the self-employed in Ireland, while Parent’s Benefit can be claimed by those who are on Parent’s Leave from work. Parent’s Leave is different from parental leave and employer’s do not have to pay workers who are on Parent’s Leave but may choose to make top-up payments.
The UK meanwhile still has one of the most expensive childcare systems in the developed world and the impact on the workplace is such that some parents (particularly mothers) do not see the benefit in returning to work given the costs of childcare can often outstrip their salary.
Can a new government make work pay?
In its “plan to make work pay” released before the 2024 General Election, the Labour Party acknowledged that the current parental leave system does not support working families. As well as promising to make parental leave a day one right, the party promised to review the parental leave system within the first year of entering government. Whether the recent changes in Sweden and Ireland will influence policy in the UK remains to be seen but it may be food for thought for a new Government wanting to radically change the world of work.
Understanding the difference between Ordinary Parental Leave and Shared Parental Leave
Understanding the parental leave rights afforded to employees in the UK can become confusing. As employment law specialists, we provide employment law advice for individuals and for businesses. Parental leave in the UK falls under two banners, ‘ordinary parental leave’ and ‘shared parental leave’.
Ordinary parental leave is additional to any maternity or paternity leave. In order to take ordinary parental leave an employee must:
- be legally classed as an ‘employee’;
- have worked for the employer for at least one year; and
- have parental responsibility for the child.
Each parent can take up to 18 weeks of ordinary parental leave per child until the child reaches 18 years old. They must give 21 days’ notice to their employer and confirm the start and end dates of their leave. Ordinary parental leave must be taken in blocks of weeks and no more than four weeks per year for each child. Whilst ordinary parental leave is unpaid, employees will still accrue their holiday entitlement as usual.
Unlike ordinary parental leave, shared parental leave is not available in addition to any maternity or paternity leave. Instead, it adds flexibility to maternity leave by allowing employees to end their maternity leave early and share the remaining time between themselves and their partner. Parents who are eligible can use shared parental leave in the first year (52 weeks) following:
- the birth of their child;
- adopting a child; or
- getting a parental order if they had the child through surrogacy.
Unlike the recent changes seen in Sweden, leave cannot be allocated to grandparents. Parents can get up to 50 weeks shared parental leave depending on how much maternity/adoption leave they have already taken from their 52-week eligibility window. They must take a minimum of 2 weeks’ leave immediately after the birth or adoption of a child.
Having the right policies in place
Businesses should have a parental leave policy in place and make it available to individuals and employees, either in a staff handbook or intranet. Our employment law solicitors can advise businesses and individuals on any issues or queries relating to parental leave including providing up-to-date policies that can be incorporated into existing staff handbooks.
Of course, if the result of any review by the new government is a significant change in the way parental leave can be used, businesses will need to adapt their policies to reflect new practice. How significant any change will be and whether influence will be drawn from the likes of Sweden and Ireland remains to be seen.
For any help and guidance around parental leave, as an employer or an employee, please contact us. Our expert employment law team can arrange a free initial discussion to identify the right course of action for you.